Over the next three years, more than three-quarters (79 percent) of business leaders expect the roles of translation and localization to evolve within their business strategies. That’s according to a recent global survey conducted by Censuswide for Phrase, involving 2,000 business leaders. The survey also found that 75 percent of global business leaders consider the extent and reach of their global footprint to be directly tied to their ability to win new business and grow existing relationships.
The importance of global expansion and the growing strategic nature of localization and translation are intimately related in the minds of today’s executives. At present, over half (55 percent) of business leaders globally say their company has lost business due to the lack of a proper translation and localization strategy. This highlights how a simple change could make a huge positive impact.
At a high level, these findings are indicative of a larger shift that’s underway within business strategy conversations. Moving forward, translation and localization aren’t going to be approached as executional components of global growth. Rather, these processes will be considered foundational elements of success in an increasingly global business environment. Let’s explore why translation and localization will be taking an increasingly prominent seat at the strategy table.
Why Localization Has Become a Strategic Imperative
There are multiple factors that have contributed to localization’s evolution into a crucial component of business strategy in recent years. Here are a few of the key factors:
- Globalization and Market Saturation: With increasing globalization, markets have become more saturated, and competition has intensified. To stand out and gain traction in crowded marketplaces, businesses must tailor their offerings to meet the specific needs and preferences of local audiences. Localization allows companies to create personalized experiences that resonate with diverse consumer segments, fostering stronger connections and brand loyalty.
- Consumer Expectations and Cultural Sensitivity: Today’s consumers expect brands to speak their language, both literally and figuratively. They value authenticity and cultural relevance, and they are more likely to engage with brands that demonstrate an understanding of their cultural context. Localization enables businesses to communicate effectively in local languages, adapt content to cultural norms, and avoid inadvertent cultural faux pas, thereby enhancing brand credibility and trust.
- Digitalization and Accessibility: The digital revolution has made information and products accessible to consumers worldwide, regardless of geographical barriers. However, this accessibility also necessitates localization to ensure that content and services are relevant and usable across different regions. From websites and mobile apps to e-commerce platforms and digital marketing campaigns, businesses need to localize their digital assets to reach and engage global audiences effectively.
- Regulatory Compliance and Legal Considerations: Regulatory requirements vary from one country to another, covering aspects such as data privacy, advertising standards, and product labeling. Localization involves ensuring compliance with local laws and regulations, reducing the risk of legal complications and potential penalties. By incorporating localization into fundamental business strategy and global expansion conversations, businesses can navigate regulatory landscapes more effectively and establish a stronger foothold in international markets.
- Advancements in Technology: Technological advancements have made localization more accessible and efficient than ever before. Automation tools, artificial intelligence, and machine learning algorithms facilitate the translation and adaptation of content at scale, reducing time and costs associated with traditional localization methods. This enables businesses of all sizes to implement localization strategies more effectively and expand their global reach with greater agility.
As business leaders prioritize global expansion initiatives, the conversations at the strategic planning level are evolving. By embracing localization as a strategic imperative, and prioritizing it from the outset, companies can unlock new opportunities for growth, innovation, and success in today’s interconnected world.
